50 Percent retracement?
This chart will be the working diagram for 2008. Let me be blunt, we are going to pull back to 1250 area. Can you see it? That steep break out at the beginning of 2006 does not look sustainable and it looks like the market is having indigestion for the past few months. Other points that do not make me feel good about being invested in SPX is that in the rally since 2003, the 50 day moving average has only violated the 200 day moving average two times, we just had a third. The double top in the 50 day moving average looks ominous. One last thought, in looking at the decline from 2000-2003 it did not happen over night and this retracement will not either. I think it will take over one year to get to 1250, and as the previous decline, there will be tradeable rallies in its duration.
SDS and other short etf's will add value.
SDS and other short etf's will add value.
It's okay to isolate, as long as you don't do it alone.
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